雅虎香港財經 PSFE or FOUR: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Financial Transaction Services sector have probably already heard of Paysafe Limited (PSFE) and Shift4 Payments (FOUR). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Paysafe Limited has a Zacks Rank of #2 (Buy), while Shift4 Payments has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PSFE is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
PSFE currently has a forward P/E ratio of 7.48, while FOUR has a forward P/E of 19.16. We also note that PSFE has a PEG ratio of 0.40. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FOUR currently has a PEG ratio of 0.74.
Another notable valuation metric for PSFE is its P/B ratio of 1.28. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, FOUR has a P/B of 7.07.
These are just a few of the metrics contributing to PSFE's Value grade of A and FOUR's Value grade of C.
PSFE sticks out from FOUR in both our Zacks Rank and Style Scores models, so value investors will likely feel that PSFE is the better option right now.
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Paysafe Limited (PSFE) : Free Stock Analysis Report
Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report
